Question

From the perspective of People flows to analyze the impact of the Brexit. People flows includes Migrants, Tourists , International Students. Give data to support.

Answer 1

Brexit is United Kingdom leaving the European Union and operating as a separate entity.

People favoring Brexit says that as the number of migrants, tourists, International students increase it would create a higher level of unemployment as more number of people would compete for the same job. But in fact, that is not the case as the people migrate and settle in EU, tehy bring in skills and expertise along with them and thus the overall economy flourishes. Moreover all the immigrants would not compete for the same job. But at the same time, as the number of immmigrants increase, the overall population increases, leading to a higher demand of the commodity and thus higher level of production is required. this would thus, raises the overall level of GDP.

It will thus lead to positive growth of the economy.

The data also supports the same. It shows that the unemployment does not increase much with the level of immigration. It has been observed that with 10% increase in the level of immigration, there is only 0.4 percentage increase in the unemployment rate. Thus it is not a typical upward sloping curve, thus indicating that there is not much impact on unemployment rate with an increase in the level of immigration.

Due to Brexit, the number of immigrants fromUK to any other country of EU would fall drastically. It is estimated that the immigration would come down approximately to 40% post brexit.